How The Fashion Industry Impacts Economic Development

The economic impact of the fashion industry is massive. Fashion companies collectively make up a multi-billion dollar industry that benefits the economy through job creation and the money it generates. However, much of the cheap clothing that people buy is worn just a few times before being thrown away and replaced with the newest trends. While it may seem like people benefit from these low prices, they don’t come without major consequences. In this article, we’ll discuss the negative impact that the fashion industry has on the economy and what we are doing to improve it.

To recognize the full impact of the fashion industry, we must first understand the definition of economic development. In essence, economic development is the creation of wealth from which community benefits are obtained. It is an investment in growing an economy, improving prosperity, and enhancing the quality of life for residents within a given community. There are a few different ways in which the economic development of the world is impacted by the fashion industry. 

On a global scale, we collectively purchase around 80 billion pieces of new clothing each year, and the demand for clothing will only continue to increase. To meet these demands, the fashion industry has become incredibly reliant on low-cost labor — specifically in low-income Asian countries like China, India, Vietnam, Bangladesh, and the Philippines. According to a 2019 Oxfam report, a staggering 0% of Bangladeshi garment workers and 1% of Vietnamese garment workers earned a living wage. Without a sufficient living wage, parents are forced to start their children in factory jobs as young as age ten to help provide for their families.

Our company prides itself in being part of the solution to some of these challenges. Adelante is part of the slow fashion movement, which prioritizes people, the planet, and product quality over profit. At a time when many of the world’s largest brands are overworking their employees and paying below minimum wage, we have a vision to change this — one pair of ethically crafted shoes at a time.

At Adelante, we created a social impact methodology called the Living Well Line to define the relative cost of living well in a given community anywhere in the world. We put this standard in place because we saw traditional development efforts failing to be financially sustainable, inspire stakeholder ownership, promote stakeholder agency, and understand and account for local contexts. As a result of the Living Well Line, our craftsmen in Guatemala earn above what they define as necessary to live well (about double the local market rate) and are paid directly, ensuring they have the means to support themselves and their families. In theory, if our craftsmen earn above the Living Well Line, then they will invest their income back into their local economy and catalyze broader community development over time. 

Now more than ever, it has become increasingly important to prioritize ethical fashion brands and be more mindful with everyday purchases. You can start by taking small steps, such as cutting back on fast fashion retailers and impulse buys. Instead, do your research and invest in ethically made, quality pieces that will last a lifetime, like Adelante shoes. In doing so, you can empower the people who make your clothes and help improve the local economy for those communities. If you’re interested in making the shift towards a completely ethical wardrobe and want to start with a new pair of shoes, check out our collection of men’s and women’s handcrafted leather shoes today!